Non-Alcoholic Beer Sales Surge 22% as Nearly Half of Americans Cut Back on Drinking

In Denver, beverage makers are facing a new reality as Americans continue to cut back on alcohol. Sales of beer, wine, and spirits in the United States have been falling steadily, a trend that has accelerated over the past two years. This shift is most pronounced among younger consumers, who cite health and financial reasons for drinking less. As a result, the market for non-alcoholic alternatives is expanding rapidly, prompting both established companies and newcomers to invest heavily in new products.

A recent report from CoBank’s Knowledge Exchange highlights the resilience of non-alcoholic beverages within the broader beverage industry. The report points to strong growth potential as more consumers seek out options that allow them to moderate their alcohol intake without sacrificing social experiences. Billy Roberts, a food and beverage economist at CoBank, noted that innovation is driving the category forward. “Beverage producers are introducing options with novel sensory experiences that can stand on their own, rather than simply mirroring alcohol-based counterparts,” Roberts said.

The decline in alcohol consumption is not limited to the United States. In 2024, global wine consumption dropped to its lowest level since 1961, according to the International Organisation of Vine and Wine. In the U.S., wine sales fell by nearly 6% last year. NielsenIQ’s “The Halftime Report” found that volume sales across all alcoholic segments continued to erode in 2025.

At the same time, nearly every category of alcoholic beverage now faces competition from low- or non-alcoholic alternatives. Beer alternatives have seen particular success. Data from Circana shows that non-alcoholic beer purchases among U.S. alcohol-buying households rose by 22% between December 2023 and November 2024. Non-alcoholic wine, while still a small segment, saw a 41% increase in dollar sales last year.

Consumer research indicates that almost half of Americans are trying to drink less alcohol in 2025, with interest especially high among younger generations. NCSolutions reports that interest in “sober-curious” lifestyles has grown by 44% over the past two years. A quarter of American adults reported drinking no alcohol at all in 2024.

The reasons for this shift go beyond avoiding intoxication. Many consumers are motivated by concerns about wellness and personal finances. Alcohol is often expensive, and younger consumers are more likely to seek out lower-cost or healthier alternatives.

As alcohol consumption declines, cannabis use is on the rise. The market for cannabis-infused beverages is growing quickly, with U.S. sales projected to reach $2.8 billion by 2028. While this remains small compared to the overall alcoholic beverage market, cannabis drinks are expected to grow at an annual rate of nearly 17% through 2028—far outpacing the projected growth for alcoholic beverages.

Millennials and Gen Z are leading this trend toward cannabis beverages, attracted by lower calorie counts and what they perceive as more natural ingredients. These drinks also offer a familiar format—such as seltzers or tonics—that appeals to those looking for alternatives to traditional smoking or edibles. Older consumers are also showing interest, particularly those seeking relaxation or medical benefits.

Despite their promise, cannabis-infused drinks face challenges such as higher prices compared to other beverages. However, industry experts believe continued innovation in flavors and formulations will drive further growth.

Billy Roberts of CoBank expects competition between alcoholic drinks, non-alcoholic alternatives, and cannabis-infused beverages to intensify in coming years. He notes that new products are being positioned not just as substitutes for traditional drinks but as functional beverages offering benefits like stress relief or improved sleep.

As Americans continue to rethink their drinking habits, beverage makers are responding with a wave of new offerings designed to meet changing tastes and priorities. The landscape for adult beverages is shifting quickly, with innovation and consumer demand shaping what people choose to drink—and why—across the country.